Tetra set for go ahead on Sidel merger

Tetra Laval's €1.7 billion bid for French beverage equipment manufacturer Sidel is expected to be cleared by European competition regulators after 18 months of wrangling, according to a report from FT.com.

The expected decision will mark the first occasion that such a ruling has been reversed by the EU authorities and that the deal still goes ahead. Previous reversals have occurred but market conditions have meant that such deals were no longer feasible.

Last October the EU court ruled that Brussels had failed to prove its controversial theory that the merger would enable Tetra to use its strong position in carton packaging to gain a virtual monopoly in the European market for plastic bottles made by Sidel.

Last year Tetra sold two businesses in the plastic bottling market in an effort to comply with competition laws. The approval will enable Tetra to take control of Sidel more than 18 months after buying 98 per cent of its shares, the FT.com report said.

According to sources close to the investigation, the Brussels authorities have asked Tetra executives for a "significant" amount of information, a sure sign that this second investigation has been taken seriously.